Annual report 2014

1 Property, plant and equipment

Enlarge table
EUR million Land, buildings and similar assets Technical equipment and machinery Operating and office equipment Prepayments and assets under construction Total
Cost
As at 1 Jan. 2014 470 307 396 5 1,178
Foreign exchange rate adjustments 8 6 2 16
Additions to scope of consolidation 0
Additions 12 22 98 6 138
Reclassifications 1 1 2 -4 0
Disposals 30 19 94 143
As at 31 Dec. 2014 461 317 404 7 1,189
 
Accumulated depreciation
As at 1 Jan. 2014 215 215 266 0 696
Foreign exchange rate adjustments 4 4 2 10
Additions 0
Depreciation 17 20 95 132
Impairments 6 2 8
Reversals of impairment losses 1 1
Reclassifications 0
Disposals 24 18 93 135
As at 31 Dec. 2014 218 222 270 0 710
 
Net carrying amounts
As at 31 Dec. 2014 243 95 134 7 479
As at 1 Jan. 2014 255 92 130 5 482

Property, plant and equipment includes assets totalling EUR 35 million (previous year: EUR 38 million) recognised based on finance leases. Of this amount, EUR 33 million (previous year: EUR 35 million) relates to land, buildings and similar assets and EUR 2 million (previous year: EUR 3 million) to operating and office equipment. As in the previous year, no non-cash investments were made in property, plant and equipment (finance leases).

Additions and disposals during the financial year relate primarily to textiles and hand towel dispensers to be rented out by the CWS-boco division. Of the disposals during the previous year, EUR 1,585 million reported under cost and EUR 1,061 million reported under accumulated depreciation resulted from the reclassification of the Celesio division’s assets as held for sale.

The EUR 8 million in impairments in the financial year essentially relates to write-downs of real estate no longer required for operations in the Holding and other companies segment. The recoverable amount of assets written down is EUR 10 million; this amount was calculated using the discounted cash flow method (DCF method) as the fair value less costs of disposal (Level 2). In the previous year, the impairments of EUR 6 million were essentially attributable to laundries in the CWS-boco division.

Enlarge table
EUR million Land, buildings and similar assets Technical equipment and machinery Operating and office equipment Prepayments and assets under construction Total
Cost
As at 1 Jan. 2013 1,138 563 1,013 15 2,729
Foreign exchange rate adjustments -13 -8 -18 -39
Additions to scope of consolidation 8 4 1 13
Additions 22 28 139 17 206
Reclassifications 6 6 3 -15 0
Disposals 691 286 742 12 1,731
As at 31 Dec. 2013 470 307 396 5 1,178
 
Accumulated depreciation
As at 1 Jan. 2013 579 409 710 0 1,698
Foreign exchange rate adjustments -6 -5 -12   -23
Additions   0
Depreciation 38 32 142   212
Impairments 5 1   6
Reversals of impairment losses   0
Reclassifications   0
Disposals 396 226 575   1,197
As at 31 Dec. 2013 215 215 266 0 696
 
Net carrying amounts
As at 31 Dec. 2013 255 92 130 5 482
As at 1 Jan. 2013 559 154 303 15 1,031

As in the previous year, legally and economically owned property, plant and equipment are not subject to any restrictions on title. As in the previous year, no property, plant and equipment have been pledged as security for own liabilities. Purchase commitments for property, plant and equipment amounted to EUR 3 million (previous year: EUR 5 million).